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The method of raising equity capital from existing members by offering...

This question belongs to Commerce Financial Management
Financial Management
?

The method of raising equity capital from existing members by offering securities on pro rata basis is referred to as __________.

Answer & Solution
Correct Answer: Option B
The method of raising equity capital from existing members by offering securities on pro rata basis is referred to as Right Issue. A rights issue is an invitation to existing shareholders to purchase additional new shares in the company.
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